GST Cancellation

[Ethirajan Parthasarathy]

An Individual registered himself for GST even though the gross taxable rent is below 20 lakhs, because a part of which attracted IGST as per sec 24(1). Very recently he has applied for cancellation of registration in view of notification number.10/2017.dated.13-10-2017 Assuming his registration gets cancelled with effect from 15th of July, my doubts are 1. Is he liable to charge GST for 15 days in July 2. After cancellation of his registration, will he be able to file his GSTR-3B and GSTR-1.

[KASTURI SETHI]

Query-wise reply is as under:-

1. Yes, because notification is prospective and not retrospective.

2. After cancellation, you won't be able to file GST returns.

[DR.MARIAPPAN GOVINDARAJAN]

1. Yes. He is liable to charge GST for 15 days;

2. You may file return for the incomplete period. It may be allowed to be filed.

[KASTURI SETHI]

Sir, Can registered person's account be opened after cancellation of GST registration ? In ACES this facility was available. But in GST it is a different system in Common Portal. Waiting for your further clarification pl.

[DR.MARIAPPAN GOVINDARAJAN]

Even after submission of cancellation the Department directed to file returns with late fee.

[KASTURI SETHI]

Sir, I agree to the extent "after submission" but not "after cancellation". After submission the department does not cancel registration easily. The department has strong valid grounds for not cancellation of registration even after submission by the party. The department can withhold cancellation till Govt.dues are not cleared. It is the department's discretion when to cancel. The department can wait for audit and other factors. That is why ACES is still open for every purpose but In GST regime, as and when registration is cancelled, the registered person will be delinked from the Common Portal system. In ACES system was working in a different way. This is my view.

[Alkesh Jani]

Sir, My views is that a registered person is required to pay GST, if the said person was registered for 15 days, he is liable to pay tax. Even after the cancellation of Registration, you can file the return both GSTR-1 and 3B. The user Id and password are open as the person is also required to file his Final Return.

Thanks

[YAGAY and SUN]

Till filing of final returns etc. department may allow to keep activated the assessee account.

[Ganeshan Kalyani]

Better to continue filling NIL return so as to save late fees and penalty.

AI Summary

GST liability for period of registration continues, requiring tax and potential final returns despite cancellation.
Cancellation of GST registration is prospective, so the registrant must account for GST for the days registration remained effective. After formal cancellation portal access may be removed and routine return filing may be prevented, although the tax authority can withhold cancellation or keep the account active to allow filing of pending or final returns; continuing to file nil returns while registered helps avoid late fees.